Over the past few years, fast food workers have made strides in their fight for a living wage, fair treatment by their corporate masters, and the right to unionize.
Nationwide fast food strikes organized by the Service Employees International Union (SEIU) have brought the issues of chronically low wages and wage theft in the fast food industry into the limelight.
Since millionaire franchisee owners and their billionaire corporate parents are not succeeding in their fight to keep the highly-profitable status quo, they are turning to Congress for help in fighting to keep their workers poor and non-union.
From Think Progress…
The fast food industry is hoping that a day of lobbying on Capitol Hill can blunt the momentum that fast food workers have gained through nearly two years of strikes and multiple lawsuits.
The International Franchise Association (IFA) is flying fast food store owners and other franchisees into Washington on Tuesday to drum up congressional opposition to a recent legal decision that could make corporations liable for how franchise employees are treated. The trade group expects more than 350 business owners from both the franchisee and franchisor sides of the business model to show up at its event this week, according toThe Hill. Speaker John Boehner (R-OH) and former Republican Governors Association head and Mississippi Gov. Haley Barbour are scheduled to speak to the group, and the paper reports that top Senate Republicans will introduce legislation targeting federal labor regulators in general later this week.
The top attorney for the National Labor Relations Board (NLRB) determined in July that McDonald’s exerts so much control over how franchisees operate that they are responsible for labor law violations committed by franchise owners. That finding has yet to be tested in court, but if it holds up and is applied beyond the nation’s largest fast food chain, it would make it much harder for industries that rely on franchising to stymie workers’ attempts to exercise their labor rights.
IFA President Steve Caldeira said the board’s decision about McDonald’s franchisees “would essentially take away their autonomy to run their own business.” But franchisees enjoy little autonomy under the restrictive agreements they sign with the corporation now.
McDonald’s sends both formal company inspectors and secret shoppers into some of its stores to verify that the owners are keeping up with the exacting requirements of its contracts. It installs a computer system that monitors the money coming in and going out of each store at all times, automatically alerting managers if their labor costs get too high — an occurrence that can trigger labor law violations such as requiring workers to clock out but keep working or remain on-site without pay until the computer system reports that the store is back in the black.
Nine in 10 fast food workers report wage theft. The industry pays corporate CEOs 1,200 times more than it pays the typical worker. McDonald’s made $5.6 billion in profit on $28.1 billion in total revenue last year.
Most fast food companies require franchise owners to demonstrate a personal net worth in the millions of dollars before they are eligible to run a store. McDonald’s won’t entertain franchise applications from anyone who doesn’t have at least $750,000 in non-borrowed assets.
The eagerness of IFA members to take up McDonald’s cause against the NLRB indicates that many other companies fear they are vulnerable to the same arguments about corporate control over franchise workplaces, and would ultimately face the same consequences for labor violations that the board’s lawyer believes McDonald’s should face.
It also signals that franchise owners and their corporate bosses are more afraid of workers’ power than of the enforcement mechanisms that are supposed to punish wage theft. While workers have won several multi-million-dollar wage theftsettlements this year, the legal systems that govern wage and hour violations around the country are generally ineffective. In California, where labor law is robust, workers have a less than one-in-five chance of recovering lost wages even when they prove they were robbed and win a judgment for restitution from the state. Wage theft steals more money each year than every bank robbery and store holdup in America combined.
As the daughter of a union man, I say, “Every nickel, every dime, they deserve their overtime.”
End wage theft! If you’re there and working, you should be paid for your time.
And end taxpayer subsidies for multi-billion-dollar, multi-national corporate giants like McDonald’s. Taxpayers should have to pay for food stamps and other government assistance for workers that aren’t paid a living wage. If McDonald’s can afford to pay its CEO $9200/hour. It can afford to pay workers $15/hour.
You speak of McDonald’s as if it were all one giant company, but it isn’t. There is McDonald’s the Franchisee that pays its CEO $26Million a year and has a 20% profit margin. Then there is McDonald’s the Franchisor that pays the owner a small single digit profit each year.
The one who will pay the $15 per hour is McDonald’s the Franchisor and in order to pay that, they will either make an even smaller profit or they will raise prices on their products. Either one will make the Franchisor less competitive which may put them out of business. As it is now, the Franchisee’s have a 20% failure rate with things as they are.
I have been in favor of the $15 per hour ever since I first heard of it. Granted, it will put some franchisees out of business, but the ones that remain will be paying a better wage. It will also encourage other low wage earners to demand higher wages which, if they get it, will likely mean some job losses, but again, those who keep their jobs will be better paid. The inflationary aspects of suddenly rising wages will eventually steal the gains made with the $15 per hour wage, but for a while they will have a good solid wage…until they don’t. Or should I say “until we don’t” because inflation hits us all. You see, laws of economics don’t go away just because we want them to. But, as I said, I am in favor of the $15 per hour wage; it is the decent thing to do.
Now you’ll have to have a bachelors degree or 3+ years experience to get a job flipping burgers. Once the fast food workers get $15 an hour, everyone is going to demand $15 an hour. McDonalds will be filled with college grads with a few years’ experience in the professional world, because they can get better money at McDonalds.
Where will the less educated, less experienced, and those without useful skills be able to work? I’m not wholly convinced this won’t force people out of the workforce because fast food jobs will be taken over by overqualified people looking to make more money.
Well, you could very well be correct. I hadn’t thought of it from that perspective. The term that applies to either of our scenarios is “unintended consequences”. They are nearly always a side effect of good intentions.
Equal time? Did the republican congress critters meet with fast food workers? Hell, no. Those people are not their constituency.
Who would speak for their constituency? Who could cohesively express their varied demands? Who would they allow to speak for them?